Part-time work and the Social Security Administration’s evaluation of “substantial gainful activity”

Ohio Social Security disability claimants who are working have to deal with issues raised by the Social Security Administration’s regulations regarding “substantial gainful activity.”

It is possible to be working and still qualify for Social Security disability benefits. However, determining your eligibility requires an analysis of the type of work it is and how much you are being paid for the work.

The Social Security Administration approaches the issue of part-time work in its evaluation of “substantial gainful activity” in the first step of its five-step sequential evaluation process to determine whether you are disabled for purposes of entitlement to disability benefits.

What is “substantial gainful activity”?

The Social Security regulations say that no matter how impaired you are, if you are working and performing “substantial gainful activity” then you cannot be found disabled and will not qualify for Social Security disability benefits.

The Social Security Administration then defines “substantial gainful activity” in specific detail. The definition comes in two parts: the activity must be both “substantial” and “gainful.”

To be “substantial” the work activity must involve significant physical or mental activities. Work may be substantial even if it is done on a part-time basis or if you do less, get paid less, or have less responsibility than you did before. However, work may not be “substantial” if you are unable to do ordinary or simple tasks satisfactorily without more supervision or assistance than is usually given other people doing similar work or if you are doing work that involves minimal duties that make little or no demands on you and that are of little or no use to your employer.

To be “gainful” the work activity must be the kind of work that is usually done for pay or profit, whether or not a profit is actually realized. Usually, when you are an employee of someone else, whether work is “gainful” is determined simply by looking at your earnings.

The Social Security Administration’s substantial gainful activity income levels

When the Social Security Administration analyzes whether work is substantial gainful activity it averages income according to rules that consider the nature of the work and the period of time worked. It then compares this number to an income level that it has defined as substantial. The Social Security Administration posts the substantial gainful activity level amount for the current year at www.ssa.gov/OACT/COLA/sga.html.

When the Social Security Administration computes your earnings for purposes of determining whether your work is a substantial gainful activity it uses gross earnings rather than net earnings. However, it uses only earnings derived from actual work activity for the month in question, so sick pay and vacation pay are deducted.

Deductions for “impairment–related work expenses”

As an additional adjustment to your income in the computation of whether your work constitutes substantial gainful employment, the Social Security Administration allows deduction from earnings for what it calls “impairment–related work expenses.”

These work expense deductions are for payments you make for certain items and services that you need in order to work. Generally the expenses are for drugs or medical treatment for the disabling impairment, but may also include payments for items such as attendant care services, transportation costs, and vehicle and residential modifications. These impairment-related work expenses may be deducted from your monthly earnings when determining if the work constitutes substantial gainful activity even though the items and services are also necessary for normal daily activities.

However, the Social Security Administration’s work expense rules must be reviewed carefully. For example, payment for treatment for the disabling impairment that you have to pay whether you work or not does not qualify. Another expense that you might expect to qualify but is not allowed to be deducted is the payment for routine drugs. Routine drug payments are not deductible unless they are necessary to control the disabling condition in order to enable you to work. Finally, a deduction is allowable only if you actually pay the cost. Therefore, if the cost is paid by insurance, it is not deductible; and neither is the cost of the medical insurance. However, insurance co-pays are deductible.

Get help for your disability claim from an Ohio Social Security disability lawyer

The analysis of substantial gainful activity under the rules of the Social Security Administration can be complex and confusing. An experienced disability lawyer can help you through the process and can provide all the appropriate information to the Social Security claim evaluator or Administrative Law Judge.

If you are not already represented by a Social Security disability lawyer in Ohio, Pennsylvania, Michigan, or West Virginia and want our evaluation, give us a brief description of your claim using the form to the right.

Or you may e-mail or call our office at:

The Aebi Law Firm
Ohio disability attorneys
Serving Ohio, Pennsylvania, West Virginia, and Michigan

E-mail
Phone: 704-397-8875
Fax: 740-393-0781
Toll free: 877-366-9107

The Aebi Law Firm
111 S. Mulberry St.
Mount Vernon, Ohio 43050